2.1. Business model and value chain, About Budimex Group
2.1. Business model and value chain
The Budimex Group provides a wide range of construction and assembly services, performed under the general contracting system in Poland and abroad, using the mineral and asphalt mixtures and prefabricated steel products it produces. In addition, it is expanding its presence in the waste management, infrastructure maintenance, building maintenance, renewable energy production and electromobility sectors.
The largest entities in the Group are:
- Budimex SA (the parent company), a general contractor of infrastructure, railroad, building and industrial facilities, which it executes in cooperation with Budimex Budownictwo and Budimex Kolejnictwo,
- Mostostal Kraków SA, offering prefabrication, supply and assembly of steel structures as well as mechanical assembly services for machinery and equipment for the cement and lime, power, metallurgical and chemical industries,
- The FBSerwis Group, comprising six companies that provide services in waste management (they have, among other things, their own processing facilities and landfills), road infrastructure maintenance, technical maintenance of facilities, and modernization of street lighting.
The offerings of individual Budimex Group companies are described in detail in the following section.
In 2000, a controlling stake in Budimex SA was purchased by one of the largest construction companies in the world – the Spanish construction concern Ferrovial. This confirms the company’s strong foundations and high growth potential, while the market position and know-how of the strategic investor further support Budimex’s competitive advantage.
The Budimex Group carries out economic activities primarily in Poland, but also in foreign markets. The German Market Branch of Budimex SA has been operating for many years, with its operations focused on subcontracting services for companies in the following areas: production of prefabricated reinforced concrete elements, production of prefabricated elements for building and engineering construction, reinforcement works and production of steel structures for the construction of power plants, bridges, halls, containers, tanks and machinery. The local market is also the area where a branch of Mostostal SA and Budimex Bau operate, the latter having entered the market through the acquisition of construction contracts. Budimex SA provides services through separate branches in the Czech, Slovak and Latvian markets. For more information about the Group’s foreign operations, see section 7.3.
Figure: History of the Budimex Group
Figure: Number of completed contracts
Creating enterprise value
The Management Board of Budimex SA takes measures aimed at a steady increase in the company’s value for all shareholders and defines the company’s development directions. In 2024, the Budimex Group’s activities will be focused on increasing the margins of its order portfolio and winning new profitable construction contracts in Poland and on foreign markets. In the long term, the Management Board of Budimex SA will strive to diversify the Group’s business, both in the construction segment (inter alia increasing its market share in the railroad or hydro-engineering segments) and in the services segment (developing new fractions of waste and increasing processing capacity) as well as through the development of renewable energy activities on the way to building its own portfolio of wind and photovoltaic installations. Business objectives are supported by the ESG strategy published in 2023, the main principles of which are described in Section 3.3.
